Fruitful Valley

On March 29, 2012, MIGA issued a guarantee of $2.9 million to UniFruit Limited of the United Kingdom covering its investment in Fruitful Valley in Ethiopia. The coverage is for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project consists of the establishment of the “Fruitful Valley” fruit and vegetable farm by UniFruit Limited (Ethiopia Branch) in Tigray Province. Fruitful Valley plans to cultivate vegetables and fruits such as garlic, onions, pumpkin, strawberries, asparagus, raspberries, boysenberries, and grapes on 1,000 hectares of land leased from the government. The majority of fruits and vegetables will be exported to European and Middle Eastern countries and some will be supplied to local markets.

The project is expected create about 300 local jobs during phase one and provide public services and amenities to surrounding villages. It will also generate tax revenues for the government and transfer skills and modern agricultural equipment to local farmers.

The project is aligned with the World Bank’s Country Assistance Strategy for Ethiopia which calls for fostering economic growth. By providing jobs and service in rural communities, it will help contribute to the reduction of rural-urban migration. It is also aligned with MIGA’s strategic objective of promoting investment into the world’s poorest countries. The project was underwritten through MIGA’s Small Investment Program.